RBI policy been somewhat pegged to Fed, even as it formally targeted inflation: Lead economist, Emkay Global
"The RBI policy has been somewhat pegged to the Fed, specifically over the last two years, even as it formally targeted inflation. This seems fair, as external dynamics have been fluid, implying that the policy prerogative needs to be flexible for ensuring financial stability," said Madhavi Arora, lead economist at Emkay Global.
2:22 PM
RBI MPC updates: Central bank to soon launch app to enable retail investors to participate in govt bond
The RBI today announced the launch of a mobile app to enable retail investors to participate in government securities (G-Secs) or government bonds market. RBI had launched Retail Direct Scheme in November 2021 to give access to individual investors to maintain gilt accounts with the RBI and invest in government securities.
2:19 PM
RBI to allow investment, trading of Sovereign Green Bonds at IFSC, Gujarat
The RBI today stated that it will allow investment and trading of Sovereign Green Bonds (SGrBs) at the International Financial Services Centre (IFSC), Gandhinagar.
1:56 PM
RBI MPC news updates: Central bank to release framework on fintech self-regulatory organization by April-end
The RBI had released the draft framework for recognising Self-Regulatory Organisations for the fintech sector (SRO-FT) in January this year. The RBI is of the opinion that the SROs will promote a balance between innovation and regulatory compliance in a manner that protects consumer interests.
1:47 PM
Slight dialling down of RBI's hawkish rhetoric was an interesting aspect: Capital Economics
"The RBI kept the repo rate on hold at 6.5% today as expected but the more interesting aspect was the slight dialling down of its hawkish rhetoric. With inflation grinding down towards the central bank's 4% target, we remain comfortable with our view that the RBI will start cutting rates in the third quarter."
"We think inflation will continue to gradually drop back over the coming months, reaching the 4% target by the middle of the year. As inflation falls, a change in policy stance looks on the cards for the June meeting, which would lay the groundwork for a 25 basis points rate cut in August," Shilan Shah, deputy chief emerging markets economist, Capital Economics, said today on RBI's MPC announcement.
1:43 PM
Possibility of rate cut being pushed to 3rd quarter or possibly 4th quarter: India economist, Societe Generale
RBI MPC reactions: "With this decision, the June rate cut is definitely off the table and there is a possibility of rate cut being pushed eventually to the third quarter and possibly fourth quarter." "Although inflation is clearly easing, RBI does not see its trajectory suggesting a move toward its median target of 4.0% on a durable basis. With food inflation being the prime driver of headline inflation while core inflation is at its pandemic low and well below RBI's median inflation target, we feel that the hawkish monetary policy stance will potentially cost growth," Kunal Kundu, India economist, Societe Generale, said today.
1:39 PM
Prime focus is on building strong umbrella, strong buffer: RBI Governor Das
"It is our prime focus to build a strong umbrella, a strong buffer in the form of a substantial quantum of forex reserves which will help us when the cycle turns or when it rains heavily," RBI Governor Shaktikanta Das said today at the post policy press conference. Despite India's strong growth and inflows into equity and debt markets, the Indian rupee continues to trade near record lows as the central bank has chosen to absorb dollar inflows to build reserves. Foreign exchange reserves hit a record high of $645.6 billion as of March 29, Das said.
1:22 PM
RBI reiterates FX exposure must for rupee exchange derivative transactions
The Reserve Bank of India (RBI) on today emphasised that underlying foreign exchange exposure is necessary for transacting in rupee derivatives on exchanges.
The requirement of underlying exposure for rupee derivatives has always been the RBI's policy "for the last so many years", tGovernor Shaktikanta Das stated at a post policy media conference.
1:01 PM
India to broaden e-rupee distribution beyond banks to boost retail use: RBI
The Reserve Bank of India (RBI) said today that it is planning to use non-bank payment system operators, including third-party payment app providers, to make the e-rupee more accessible to retail users. The RBI piloted its central bank digital currency (CBDC) in 2023 but only allowed banks to offer these tokens, which led to subdued transaction volumes. The central bank has proposed that non-bank payment system operators, which include third-party payment app providers like PhonePe, Google Pay and Paytm, offer the e-rupee through CBDC wallets.
12:50 PM
MPC updates: RBI sees no need to review the necessity of the 'small finance bank' tag, says Dy Governor Rao
Deputy Governor Rajeswar Rao stated that having the tag of Small Finance Bank is part of the differentiation initiative. He added that RBI sees no need to review the necessity of the 'small finance bank' tag.
12:43 PM
RBI MPC news updates: Can’t give forward guidance on future rate action, says Governor Das
We cannot give forward guidance on future rate action. Our policy is primarily guided by domestic conditions, Governor Shaktikanta Das said. He added, "We do not follow the footsteps of the US Fed."
12:40 PM
RBI MPC LIVE updates: RBI governor refrains from commenting on electoral bonds
RBI Governor Shaktikanta Das refrains from commenting on question related on electoral bonds.
12:38 PM
RBI building gold reserves as part of India's forex reserve deployment: Governor Das
We are building gold reserves that is part of our forex reserve deployment, says RBI Governor Shaktikanta Das. No change in RBI's foreign exchange risk management policies, RBI Deputy Governor M D Patra on exchange-traded currency derivatives
12:33 PM
No change in RBI's foreign exchange risk management policies, says RBI Deputy Governor Patra
No change in RBI's foreign exchange risk management policies, RBI Deputy Governor MD Patra on exchange-traded currency derivatives.
12:27 PM
RBI MPC LIVE Updates: Will keep watch on proteins so that prices do not spill over, says Deputy Governor Patra
Food inflation has been highly volatile. The proteins have been keeping the prices high, said Deputy Governor Michael Patra. "We will watch it closely so that it does not spill over," he added.
RBI MPC highlights: RBI's Monetary Policy Committee held the key repo rate unchanged at 6.5 per cent for a seventh straight policy meeting today with economic growth also remaining strong.The two-day review meeting of the RBI's Monetary Policy Committee (MPC), the rate-setting panel, commenced on April 3 and concluded today. This was the first MPC announcement in Financial Year 2024-25 (FY25).
RBI Governor Shaktikanta Das emphasised that monetary policy must remain actively disinflationary at this stage. Five out of six members voted in favour of the rate decision whereas the monetary policy stance of 'withdrawal of accommodation' was retained with a majority of five votes. The RBI stated the economy is expected to grow by 7 per cent in the fiscal year 2025, unchanged from its earlier forecast. Strengthening rural demand, improving employment conditions and a sustained pick up in the manufacturing sector should boost consumer demand, Das added.
Earlier, Jayanth Varma, an external member on the six-person monetary policy committee, had called for an interest rate cut, stating his colleagues are keeping rates too high, which could stifle economic growth. At the February 8 policy meeting, Verma voted for a quarter-point cut, the first time in a year that he’s dissented from the rest. The committee decided to keep rates unchanged at the meeting.
All the 10 respondents in a Business Standard poll stated that the MPC expected to keep both the policy repo rate and the stance unchanged in the first policy review of FY2024-25. The committee had opted to maintain the status quo in all six policy review meetings throughout the financial year 2023-24.
 "RBI monetary policy highlights: Last mile of disinflation is always challenging, sticky, says Governor Das")
